ORIENT POWER<00615> - Results Announcement
Orient Power Holdings Limited announced on 21/09/2005:
(stock code: 00615 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Restated)
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 30/06/2005 to 30/06/2004
Note ('000 ) ('000 )
Turnover : 1,700,602 1,833,140
Profit/(Loss) from Operations : 19,993 21,827
Finance cost : (17,120) (6,859)
Share of Profit/(Loss) of
Associates : N/A 3,587
Share of Profit/(Loss) of
Jointly Controlled Entities : (866) (4,474)
Profit/(Loss) after Tax & MI : 881 13,698
% Change over Last Period : -93.6 %
EPS/(LPS)-Basic (in dollars) : 0.002 0.027
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 881 13,698
Interim Dividend : NIL 0.5 cent
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The condensed consolidated interim financial statements are prepared in
accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim
Financial Reporting". The accounting policies and basis of preparation
adopted in the preparation of the interim financial statements are the
same as those used in the annual financial statements for the year ended
31 December 2004, except in relation to the following new and revised Hong
Kong Financial Reporting Standards ("HKFRSs", which also include HKASs and
Interpretations) that affect the Group and are adopted for the first time
for the current period's financial statements:
HKAS 1 Presentation of Financial Statements
HKAS 2 Inventories
HKAS 7 Cash Flow Statements
HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
HKAS 10 Events after the Balance Sheet Date
HKAS 12 Income Taxes
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 21 The Effects of Changes in Foreign Exchange Rates
HKAS 23 Borrowing Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separate Financial Statements
HKAS 28 Investments in Associates
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 36 Impairment of Assets
HKAS 37 Provisions, Contingent Liabilities and Contingent Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and Measurement
HKAS 40 Investment Property
HKFRS 2 Share-based Payment
HKFRS 3 Business Combinations
HK(SIC)-Int 21
Income Taxes - Recovery of Revalued Non-depreciable Assets
HK-Int 4
Leases - Determination of the Length of Lease Term in respect of
Hong Kong Land Leases
The adoption of HKASs 1, 2,7, 8, 10, 12,16, 18, 19, 21, 23, 24, 27, 28,
32, 33, 37, 38, 39, HKFRS2, HK(SIC)-Int 21 and HK-Int 4 has had no
material impact on the accounting policies of the Group and the methods
of computation in the Group's condensed consolidated financial statements.
The impact of adopting the other HKFRSs is summarised as follows:
(a) HKAS 17 - Leases
In prior periods, leasehold land and buildings held for own use were
stated at cost less accumulated depreciation and any impairment losses.
Upon the adoption of HKAS 17, the Group's leasehold interest in land and
buildings is separated into leasehold land and leasehold buildings. The
Group's leasehold land is classified as an operating lease, because the
title of the land is not expected to pass to the Group by the end of the
lease term, and is reclassified from fixed assets to prepaid land
premiums/land lease payments, while leasehold buildings continue to be
classified as part of property, plant and equipment. Prepaid land
premiums for land lease payments under operating leases are initially
stated at cost and subsequently amortised on the straight-line basis over
the lease term. When the lease payments cannot be allocated reliably
between the land and building elements, the entire lease payments are
included in the cost of the land and buildings as a finance lease in
property, plant and equipment.
This change in accounting policy has had no effect on the condensed
consolidated income statement and retained earnings. The comparatives on
the condensed consolidated balance sheet for the year ended 31 December
2004 have been restated to reflect the reclassification of leasehold land.
(b) HKAS 40 - Investment Property
In prior periods, changes in the fair values of investment properties were
dealt with as movements in the investment property revaluation reserve.
If the total of this reserve was insufficient to cover a deficit, on a
portfolio basis, the excess of the deficit was charged to the income
statement. Any subsequent revaluation surplus was credited to the income
statement to the extent of the deficit previously charged.
Upon the adoption of HKAS 40, gains or losses arising from changes in the
fair values of investment properties are included in the income statement
in the year in which they arise. Any gains or losses on the retirement or
disposal of an investment property are recognised in the income statement
in the year of the retirement or disposal.
The Group has taken advantage of the transitional provisions of HKAS 40 to
adjust the effect of adopting the standard to the opening balance of
retained earnings rather than restating the comparative amounts to reflect
the changes retrospectively for the earlier period presented in the
condensed consolidated financial statements. The effects of the above
changes are summarised in note 2 to the condensed consolidated financial
statements.
(c) HKFRS 3 - Business Combinations and HKAS 36 - Impairment of Assets
In prior periods, goodwill/negative goodwill arising on acquisitions prior
to 1 January 2001 was eliminated against consolidated capital reserve in
the year of acquisition and was not recognised in the income statement
until disposal or impairment of the acquired business.
Goodwill arising on acquisitions on or after 1 January 2001 was
capitalised and amortised on the straight-line basis over its estimated
useful life and was subject to impairment testing when there was any
indication of impairment. Negative goodwill was carried in the balance
sheet and was recognised in the consolidated income statement on a
systematic basis over the remaining average useful life of the acquired
depreciable/amortisable assets, except to the extent it related to
expectations of future losses and expenses that were identified in the
acquisition plan and that could be measured reliably, in which case, it
was recognised as income in the consolidated income statement when the
future losses and expenses were recognised
Upon the adoption of HKFRS 3 and HKAS 36, goodwill arising on acquisitions
is no longer amortised but subject to an annual impairment review (or more
frequently if events or changes in circumstances indicate that the
carrying value may be impaired). Any impairment loss recognised for
goodwill is not reversed in a subsequent period.
Any excess of the Group's interest in the net fair value of the acquirees'
identifiable assets, liabilities and contingent liabilities over the cost
of the acquisition of subsidiaries and associates (previously referred to
as "negative goodwill"), after reassessment, is recognised immediately in
the income statement.
The transitional provisions of HKFRS 3 have required the Group to
eliminate at 1 January 2005 the carrying amounts of accumulated
amortisation with a corresponding entry to the cost of goodwill and to
derecognise the carrying amounts of negative goodwill (including that
remaining in consolidated capital reserve) against retained earnings.
Goodwill previously eliminated against consolidated capital reserve
remains eliminated against consolidated capital reserve and is not
recognised in the income statement when all or part of the business to
which the goodwill relates is disposed of or when a cash-generating unit
to which the goodwill relates becomes impaired.
The effects of the above changes are summarised in note 2 to the condensed
consolidated financial statements. In accordance with the transitional
provisions of HKFRS 3, comparative amounts have not been restated.
2. SUMMARY OF THE IMPACT OF CHANGES IN ACCOUNTING POLICIES
The effects of the changes in the accounting policies described in
note 1 above are as follows:
(i) On income statement line items
For the six months ended 30 June
2005 2004
HK$000 HK$000
(Decrease)/Increase in share of results of
jointly-controlled entities (3) 44
Decrease in share of results of associates - (707)
Decrease in taxation 3 663
------- -------
- -
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The application of the HKFRSs has had no effect to the Group's profit for
the period ended 30 June 2005 and 2004.
(ii) On balance sheet items
As at As at
31.12.2004 Adjustments 1.1.2005
HK$'000 HK$'000 HK$'000
-----------------------------------
Capital reserve 1,243 (1,243) -
Goodwill reserve (25,918) 25,918 -
Property revaluation reserve 9,936 (550) 9,386
Retained profits 487,734 (24,125) 463,609
==================================
The application of the HKFRSs has had no effect to the Group's equity
at 1 January 2004.
3. EARNINGS PER SHARE
The calculation of basic earnings per share for the period is based on the
profit attributable to equity holders of the parent of HK$881,000 (six
months ended 30 June 2004: HK$13,698,000), and the weighted average number
of 509,805,968 (six months ended 30 June 2004: 509,805,968) ordinary
shares in issue during the period.
Diluted earnings per share amounts for the periods ended 30 June 2005 and
2004 have not been disclosed as no dilutive events existed during these
periods.
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